AIP 6: Timelock Weight Voting

Migrated from AIP 6: Timelock Weight Voting · Issue #6 · airswap/AIPs · GitHub

Summary

The vocal majority of the Airswap community is against AIP 2: Airdrop for Holders, however we can still find ways to reward long term and active holders. This proposal aims to bring more fairness to the system while benefiting long term users without the need to dilute them. It will also help counter inflation effects from rewards emitted to market participants such as Liquidity Providers. This way long term token holders can still be rewarded without affecting circulating supply. Both sides of the argument benefit from this. It’s a win-win.

The concept rewards long term holders. The longer Airswap token holders lock their tokens, the more voting weight they earn.

Specification

Users lock their tokens in a contract. The longer the tokens are locked, the more voting weight their stake has. To unlock, token holders must wait at least 2 weeks to have access to their tokens.

It benefits holders active in the governance process as their voting weight increases but doesn’t punish inactive users as their voting weight remains the same.

A user with locked tokens can vote in as many proposals as he wants, however, upon unlocking the tokens the process resets and he has to accumulate voting weight all over again.

In the future if AIP 4: Fee Split Rewards for Token Holders is approved, both AIPs could complement each other. Meaning users would stake/lock their tokens to be eligible for fee rewards as well as increased voting weight. This creates solid value accrual mechanisms for the AST token while at the same time removing tokens from circulation, benefiting active Airswap token holders.

Rationale

People with a vested interest and committed to Airswap should be rewarded. Markets are all about incentives and long term holders play a key role in any community. As such, this proposal focus on increasing the voting weight of token holders according to how long they have a stake.

This means as long as a token holder is committed to the project, he could potentially reach a higher voting weight and have bigger influence on voting proposals than someone with more tokens that doesn’t participate in the Airswap governance process.

Token holders are rewarded, tokens are taken out of circulation and circulating supply doesn’t increase unnecessarily because of AIP 2: Airdrop for Holders. Tokenomics are improved and both sides win. While this AIP is independent of AIP 2 and both could be approved, it’s an attempt at reaching a middle ground and seriously improve AST tokenomics, utility and value.

Copyright

Copyright and related rights waived via CC0.